Answer : For existing of the Monopoly in the market than there
should be existance of the barriers to entry in the business as
follows :
- Restricts potential entrants from making huge amount of
profit.
- A single firm owns a key resources.
- Government gave right to restricted the single for exclusive
rights.
- Ability of firm to enter in the business.
Two kinds of barriers are :
- Legal barriers to entry : It means
that restrictions has been applied by the government related to
goods
- Govert licenceing to the
product.
- Patents of the product in market
place.
- E Economic barriers : It is related
to the cost of the business in an organization.
- Economic of scale resulted in
creation of barriers.
- Zero cost resulted in monpoly.
- Higher cost of production.